A “Tort” policy follows the same bodily injury insurance claims procedures as in “Fault” states. Regarding a car accident, a tort is a wrongful act that renders the negligent driver liable to the injured party for damages. A tort policy, therefore, is one that provides the insured with coverage if someone is injured and files a car accident claim against the insured’s policy. Unlike no-fault where everyone is covered under their own policy, with a tort or fault-based system, the negligent party’s insurance pays the damages of those who are injured and not responsible for the accident. In general, there are few limitations on suing the responsible party.

If you choose a “No-Fault” policy in one of the Choice States, there is coverage under the policy called Personal Injury Protection, or PIP, just like the “no-fault” only states. (See Bodily Injury in a No-Fault State) If you are injured and someone else is at fault, your medical and some other expenses will be covered by your own PIP coverage up to your policy limits. Just like with the no-fault only states, there are some differences in coverage depending on the state. In Kentucky, for example, basic PIP coverage is $10,000 combined for medical expenses, loss of income or services, and funeral expenses. You forfeit your right to sue the other driver for the cost of your medical treatment, and non-economic damages (e.g. pain and suffering), unless: the injury involves a broken bone, permanent disfigurement, medical expenses over $1,000, permanent injury or death. The law also allows Kentucky auto insurance companies to sell you back the right to sue (even though you carry PIP) for an increase in your premium.

In New Jersey, the no-fault policy may include much higher PIP limits than in many other states, of $250,000 per person, per accident, unless a lower limit is selected for a lesser premium. However, New Jersey’s no-fault policies include up to $250,000 coverage for permanent or significant injury as defined in the policy regardless of the limit selected. This is your own coverage, without suing the negligent party.

Pennsylvania offers both a tort policy and a limited tort policy, rather than “no-fault”. Under the tort policy, you have an unlimited right to sue. Under the limited tort scheme, you can sue for direct expenses, but not for non-economic damages (like "pain and suffering") unless your injuries are very serious. Purchasing a policy under the limited tort system reduces your premium. Due to the complexity of the system, if you are injured by a negligent driver, it would probably be best to consult with an attorney.

Under the no-fault system in Washington, D.C., you can purchase personal injury protection (PIP) coverage for you and your passengers. This policy is any combination of coverages for medical expenses, loss of income, and funeral expenses. You may still be able to sue the negligent party if the injury qualifies under one of the many exceptions to the no-fault rules there. Consult an attorney to learn about what those exceptions are and how they work.

In general, if you are in a choice state, because the laws are still in flux with regard to the no-fault and limited tort policies offered, it is always best to contact an attorney well versed in insurance law and personal injury cases to assist you with your claim.